Saudi Arabia’s venture capital funding has increased by double in less than a year according to data analytics platform MAGNiTT.
Increase Driven By Kingdoms Efforts To Promote Startup Ecosystem
Total capital deployed reached SAR 3.2 billion (USD 860 million) in H1 2025, exceeding 2024`s entire funding total. Notably, it marked a 116% increase over the same period using the year-on-year metric of comparison. Growth has been driven by Saudi Arabia’s efforts to promote entrepreneurship and stimulate the expansion of the Kingdom’s startup scene.
E-Commerce and Fintech Capital Most Sought After
Entrepreneurs seeking to raise e-commerce funding accounted for 36% of the total with deals worth SAR 1.15 billion (USD 306 million). Fintech startups amassed the highest number of investments, with 30, which corresponds to 26% of the Kingdom’s total. Furthermore, 114 VC transactions were logged during the period, marking a 31% growth compared to the first half of 2024. This represents over a third (37%) of all deals recorded in the Middle East and North Africa (MENA) region, the highest share ever for the Kingdom. Importantly, Saudi`s VC ecosystem has steadily grown over recent years enabling record funding and agreements in the first half of 2025. Such continued growth ensures the Kingdom maintains its leading position in the MENA region and reflects the country’s commitment to diversifying its economy. Moreover, it emphasises the Saudi Vision 2030`s goals of fostering entrepreneurship and stimulating investment start-ups from early to later stages.
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